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You're reading: Technology sector primed for growth

 The foundation for future growth comes from global outsourcing companies, which today are the most valuable component of the IT sector in Ukraine. Ukraine already today plays a critical role in the global IT ecosystem, with outsourcing being a multibillion-dollar market. Currently outsourcing is projected to grow from $2 billion in annual revenues to $4 billion in revenues in 2016. With an army of 50,000 software engineers, Ukrainian outsourcing companies can command valuations of $1 billion and higher. The country holds the fourth position in the number of certified IT specialists, following the United States, India and Russia.

Ukraine is an attractive destination due to its tremendous technical talent pool and lower development costs. Most of the clients are top European and Fortune 500 companies. The outsourcing industry has proved to be a boon, serving as a base for improving the competency of programmers and specialists, and providing salaries for technical talent that are high by Ukrainian standards. Local talented engineers systematically win various prestigious awards and are headhunted by the hottest Silicon Valley startups.

Ukraine also serves as a research and development hub for many multinational companies, including Google, Samsung, Seimens, Aricent, and Netcracker. Samsung alone has more than 1,500 engineers in Ukraine, while NetCracker has 700. We estimate the number of such R&D centers to be easily more than 100. Different from outsourcing, the R&D offices don’t just outsource development to Ukraine, but rather build centers for research & development of core technologies ranging from enterprise software to ecommerce platforms to mobile technology to games.

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